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By Henry Uche
For decades, Nigeria’s insurance industry has struggled with low penetration, cumbersome claims processes and weak public trust. Today, however, technology-driven innovations are beginning to rewrite that narrative.
Powered by artificial intelligence, data analytics, automation and digital platforms, Insurtech is transforming how insurers design products, assess risks, process claims and engage customers. From expanding access to underserved communities to improving operational efficiency and accelerating financial inclusion, technology is rapidly becoming the industry’s biggest growth driver. As regulators embrace digital reforms and innovators enter the market, experts say Insurtech is redefining the future of insurance in Nigeria.
Industry experts believe Insurtech is steadily breaking down many of the barriers that have long limited insurance penetration in Nigeria. By leveraging digital platforms, artificial intelligence, data analytics and automation, technology-driven insurance solutions are making products easier to understand, more affordable and readily accessible to millions of previously underserved Nigerians. Beyond simplifying policy purchase and claims processing, Insurtech is expanding financial inclusion by bringing insurance services closer to individuals and businesses that have traditionally been excluded from the formal insurance market.
For a country with a high population of young people, Insurtech is seen as a game-changer that will attract them into the insurance net since they are highly tech savvy.
A 24-year old entrepreneur, Chioma Ndudinachi, told Daily Sun that the deepening of Insurtech will be the best way to attract young insurance subscribers.
“There’s no need to sell traditional insurance policies to the younger generation. They won’t buy. It sounds Greek. Just let them know everything will be done from the comfort of their homes and boom, they are in. It’s the same with fintech banks. They have more young customers than traditional banks. That’s the way to go”, she said.
John Chukwu corroborate Ndudinachi, saying that tech-simplified solutions are what attracts the younger generation. Recognising the transformative role of technology in the industry, the National Insurance Commission (NAICOM) recently issued Nigeria’s first Insurtech operational licence to CBI Partnering Insurtech Ltd, marking a major milestone in the country’s insurance reform agenda. The landmark approval reinforces the Commission’s commitment to fostering innovation while maintaining market integrity and protecting policyholders within a well-regulated insurance ecosystem.
The licence was formally presented during a handover ceremony, where NAICOM reaffirmed its determination to promote innovation, strengthen regulatory reforms and improve consumer protection across the insurance value chain.
Speaking at the event, the Deputy Commissioner for Insurance in charge of Finance and Administration, Mr. Ekerete Ola Gam-Ikon, said the Commission has continued to reposition Nigeria’s insurance industry in line with global best practices.
He identified the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, alongside NAICOM’s pioneering Insurtech Guidelines, as key reforms driving the sector’s digital transformation. According to him, encouraging innovation within a robust regulatory framework remains one of the Commission’s strategic priorities.
Gam-Ikon explained that the licence was granted subject to strict compliance with regulatory and ethical standards, stressing that NAICOM remains committed to balancing innovation with effective consumer protection. He added that Nigeria’s approach to regulating Insurtech is attracting growing international recognition as technology increasingly becomes central to insurance development.
Presenting the licence, he said: “This milestone reflects the Commission’s commitment to responsibly nurturing innovation across the insurance value chain. We congratulate CBI Partnering Insurtech Ltd and expect full compliance with all applicable regulations. This license carries an obligation to uphold the highest standards of governance and ethical conduct. NAICOM remains committed to supporting the growth of Insurtech while protecting the interests of Nigerians.”
The approval builds on the Insurtech Operational Guidelines introduced by NAICOM on July 30, 2025, to provide a clear regulatory framework for technology-driven insurance businesses in Nigeria.
The guidelines are designed to encourage the development of innovative insurance products and services, enhance consumer protection, improve customer experience and eliminate regulatory uncertainty that could hinder investment and innovation. They also seek to deepen public confidence in the emerging Insurtech ecosystem while accelerating the digital transformation of Nigeria’s insurance industry.
NAICOM said the framework aims to promote the growth of Insurtech businesses, establish minimum regulatory standards for their operations and encourage responsible innovation without compromising policyholders’ interests. It also outlines licensing requirements for both Partnering and Standalone Insurtech firms, provides a pathway for qualified operators to transition into fully licensed standalone entities and supports the Federal Government’s broader digital economy and fintech agenda.
For insurance operators, the rise of Insurtech is no longer a futuristic concept but a practical reality that is redefining how insurance products are developed, distributed and delivered. Industry leaders say technology is helping insurers improve efficiency, reduce operating costs, expand market reach and strengthen customer confidence, while also opening new opportunities to serve millions of Nigerians who have traditionally remained outside the insurance net. The Head of Corporate Communications at Sovereign Trust Insurance Plc, Mr. Mensah Simon Peter, believes technology has become one of the most effective tools for expanding insurance penetration, particularly among underserved populations that conventional distribution channels have struggled to reach.
Speaking in an interview, Peter said the adoption of Insurtech has enabled Sovereign Trust Insurance to streamline its operations while shifting greater attention to the retail insurance market, an area widely regarded as critical to increasing insurance penetration in Nigeria.
According to him, digital innovation has simplified insurance processes for both customers and operators, making insurance products easier to understand and purchase.
“Insurtech helps us to simplify policies. By implication, it helps in the increase in business, profitability and decrease in cost,” he said.
Peter, however, argued that Nigeria’s Insurtech ecosystem is still at an early stage and requires broader participation from technology firms and startups. While commending the National Insurance Commission (NAICOM) for licensing CBI Partnering Insurtech Ltd as the country’s first operational Insurtech company, he maintained that one licensed operator cannot drive the digital transformation required across the industry.
“We need more startups to look into this opportunity. One Insurtech is not enough. The Licensed Insurtech- CBI, is a good one for them, for NAICOM, and for all of us. But we need more people to key into this aspect. The CBI can’t do the whole work.”
He also called on the regulator to deepen its understanding of the evolving Insurtech ecosystem, arguing that regulatory bottlenecks have sometimes slowed technological advancement within the insurance industry.
According to Peter, both regulators and technology companies must develop a clearer understanding of insurance operations to unlock the full benefits of digital transformation.
“Insurtech firms coming into the space need to understand the nitty gritty around the insurance industry. A lot needs to be done. Mitigating that reach in terms of claims investigation and payments gateways need to be looked into critically.”
He identified product innovation as another area requiring greater attention, stressing that insurers should move beyond simply launching new products to developing solutions that address the real needs of consumers.
“Product differentiation and creation is another area that we should look into. It’s not just creating products but creating products that people really need (a tailor made products), this is what Insurtech needs to look into and work around it.”
Peter further noted that digital technology has made insurance services more accessible by enabling customers to purchase policies, access information and complete transactions remotely without relying solely on physical branches or insurance agents.
“So with Insurtech people can do a whole lot at the comfort of their homes. Areas we can’t reach or send our agents, Insurtech enables that. NAICOM should try to understand the Insurtech space. Then training and retraining is needed to build capacity,” he added.
Similarly, the Managing Director and Chief Executive Officer of Universal Insurance Plc, Dr. Jeff Duru, described Insurtech as an indispensable component of modern insurance operations, saying technology now underpins virtually every aspect of the insurance value chain.
According to him, Universal Insurance has embedded technology across its operations to improve efficiency, customer satisfaction and overall service delivery.
“At Universal Insurance Plc, we have embraced technology-driven solutions across our business processes to enhance efficiency, customer experience, and service delivery.”
Duru recalled that Universal Insurance was among the first insurers in Nigeria to introduce digital claims services through its Fast Claims Settlement initiative, a move he said reflects the company’s commitment to prompt claims settlement and customer satisfaction. “Notably, Universal Insurance Plc was among the first insurance companies in Nigeria to introduce digital claims services through our Fast Claims Settlement initiative.
This innovation reflects our commitment to the prompt settlement of genuine claims, which remains a core pillar of our customer-centric philosophy.”
He explained that the impact of Insurtech extends far beyond claims processing, influencing virtually every stage of insurance operations.
“The impact of Insurtech extends across the entire insurance value chain. From customer onboarding and risk assessment to policy administration, inspections, underwriting, claims processing, and settlement, technology has significantly improved operational efficiency, reduced turnaround times, enhanced transparency, and strengthened customer confidence in insurance services. By leveraging digital solutions, we continue to improve service quality while positioning ourselves for sustainable growth in an increasingly technology-driven marketplace.”
Commenting on the recent licensing of CBI Partnering Insurtech Ltd, Duru described the development as a watershed moment for Nigeria’s insurance industry, saying it demonstrates the regulator’s determination to embrace innovation and digital transformation.
“The licensing of CBI Partnering Insurtech Ltd demonstrates NAICOM’s commitment to fostering innovation, digital transformation, and broader insurance inclusion in line with the objectives of the Nigeria Insurance Industry Reform Act (NIIRA) 2025. The Act provides a framework for encouraging technological innovation while ensuring adherence to ethical standards, consumer protection principles, and regulatory compliance requirements.”
He noted that although one licensed operator cannot transform the industry overnight, the approval establishes an important foundation for the emergence of more technology-driven insurance companies.
“As the first licensed Insurtech company operating within this framework, CBI Partnering Insurtech Ltd occupies a pioneering position in Nigeria’s insurance landscape. This development is expected to stimulate innovation, enhance product distribution, improve customer accessibility, and create new opportunities for collaboration between traditional insurers and technology-driven service providers.
“While the licensing of one company alone may not be sufficient to transform the industry, it is undoubtedly a major step in the right direction. It creates a foundation upon which additional Insurtech operators can emerge, thereby accelerating digital transformation and contributing to increased insurance penetration across the country.”
Despite its enormous potential, Duru acknowledged that the adoption of Insurtech comes with implementation challenges ranging from cybersecurity and data privacy concerns to integrating new technologies with existing legacy systems.
“Some of the key challenges include balancing innovation with regulatory requirements, ensuring data privacy and cybersecurity, integrating digital solutions with legacy insurance systems, maintaining customer trust, and achieving sustainable profitability while investing in technological advancement. In addition, issues relating to digital literacy, infrastructure limitations, and the adoption of new technologies may also affect the pace of implementation.”
Nevertheless, he maintained that these challenges should be viewed as opportunities to strengthen the industry’s digital ecosystem rather than reasons to slow innovation.
“It is important to note that NAICOM would have carefully evaluated both the benefits and potential risks before introducing a regulatory framework for Insurtech operations. The Commission has also established guidelines and supervisory mechanisms designed to ensure responsible innovation, consumer protection, and industry stability.
“As the ecosystem evolves, stakeholders must focus on the immense opportunities presented by Insurtech, confident that any emerging challenges can be effectively managed through collaboration, innovation, and robust regulatory oversight.”
X-raying the relationship between Insurtech and insurance penetration, Duru affirmed that Insurtech is playing a pivotal role in expanding insurance access among underserved and previously- excluded populations by leveraging mobile technology, digital platforms, and data-driven distribution models.
Through mobile applications, digital payment channels, embedded insurance solutions, and online platforms, customers can now purchase, manage, and make claims on insurance policies more conveniently and at a lower cost than through traditional distribution channels.
This innovation, the MD believes, is helping to address some of the longstanding barriers to insurance adoption, including limited accessibility, high distribution costs, and low awareness. By simplifying customer onboarding processes and improving service delivery; he confirmed Insurtech undoubtedly is making insurance products more accessible and affordable for individuals, small businesses, and rural communities.
“The impact is particularly significant in developing markets such as Nigeria, where insurance penetration remains relatively low compared to global averages. By leveraging technology to reach previously underserved segments of the population, Insurtech is promoting greater financial inclusion and providing protection against risks associated with health emergencies, agricultural losses, property damage, business interruptions, and income disruptions.
“Ultimately, the continued growth of Insurtech has the potential to bridge the insurance protection gap, strengthen economic resilience, and contribute meaningfully to the development of Nigeria’s insurance sector and the broader economy” he reiterated.
